Japan’s Ministry of Finance likely intervened as USD/JPY fell from 163.00 to 158.00, while the BoJ held rates steady at 1.00%.
The Japanese yen surged during New York trading, with USD/JPY plunging from 163.00 to 158.00, a move analysts attribute to probable Ministry of Finance intervention. The sharp decline stood out amid broader U.S. dollar weakness, signaling targeted action to support the yen.
The Bank of Japan kept its policy rate unchanged at 1.00% in an 8-1 vote, with a modestly more hawkish inflation outlook. Core CPI forecasts for FY2026 were lowered to 2.5%, while FY2027 projections rose to 2.4%, reflecting persistent inflation risks tied to foreign exchange and AI-driven demand.
Despite intervention risks, analysts suggest USD/JPY buyers may soon return, as the BoJ’s guidance for faster tightening remains limited. The yen’s rebound was short-lived, with markets eyeing further policy signals.